Tennessee § 47-9-326 - Priority of security interests created by new debtor.

§ 47-9-326. Priority of security interests created by new debtor.

Subordination of security interest created by new debtor. Subject to subsection (b), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the application of § 47-9-316(i)(1) or § 47-9-508 is subordinate to a security interest in the same collateral which is perfected other than by such a filed financing statement. Priority under other provisions; multiple original debtors. The other provisions of this part determine the priority among conflicting security interests in the same collateral perfected by filed financing statements described in subsection (a). However, if the security agreements to which a new debtor became bound as debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor's having become bound. Acts 2000, ch. 846, § 1; 2012, ch. 708, § 9. Amendments. The 2012 amendment, effective July 1, 2013, rewrote (a) which read: “Subject to subsection (b), a security interest created by a new debtor which is perfected by a filed financing statement that is effective solely under § 47-9-508 in collateral in which a new debtor has or acquires rights is subordinate to a security interest in the same collateral which is perfected other than by a filed financing statement that is effective solely under § 47-9-508 .”; and substituted “described in subsection (a)” for “that are effective solely under § 47-9-508” at the end of the first sentence of (b). Effective Dates. Acts 2012, ch. 708, § 22. July 1, 2013; provided, that, for the purpose of the secretary of state taking necessary actions for the implementation of the act, the act shall take effect April 11, 2012.